Is MTM settlement applicable for options trading?
No, the Mark to Market (MTM) process is not applicable in the options contracts. The MTM is applied only in case of futures contract.
What is End of Day (EOD) MTM settlement?
It is mandatory for Futures derivative positions to be settled in cash on a daily basis. At the end of each day, settlement of open futures positions takes place at the exchange provided closing price. The difference between the opening price and the ...
How is options trading different from trading futures?
In the case of futures trading, the buyer and seller have unlimited profit potential as well as loss potential. Whereas in options, the buyer has unlimited profit potential with limited downside, and the seller has limited profit potential and ...
Can I buy and sell Far OTM Options in FYERS?
Yes, We provide you a wider strike price range for options trading and you can Buy/Sell Far Out of The Money (OTM) Options Contracts. Options Buying Index Options – You can Buy OTM Options up to a range of 20% from the LTP. Stock Options – You can ...
What is rolling settlement?
In a rolling settlement, each trading day is considered as a trading period and trades executed during the day are settled based on the net obligations for the day. Trades in the rolling settlement are settled on a T+1 basis (i.e. 1st working day). ...
Will Physical settlement apply to the buyer of an option?
In short, Yes! As per the SEBI guidelines, In The Money (ITM) stock options contracts are due for physical settlement irrespective of the nature of the transaction. Still unclear? Let us take a look at the implications of physical settlement from ...